Territorial extrapolation of basic data as a solution of the problem of its deficiency during mass appraisal

Abstract

The article is devoted to the application of the territorial extrapolation of basic data method during a mass (cadastral) assessment of a territory that is characterized by an acute lack of market information. In the framework of the study, an acute lack is understood as the conditions when for the assessing territory there are less than five transaction (offer) prices suitable for regression models. The idea of the method is to use market information of territories that are comparable in a composition of pricing factors and the nature of their influence on the cost, as well as in terms of price levels. The developed method includes such stages as collection of basic data, creation of thematic maps, grouping of estimated territories by price level and composition of pricing factors and modeling. The method was applied to assess land plots that have the type of permitted use “for individual housing construction” and belong to the mass appraisal segment “gardening and horticulture, low-rise residential buildings” in the settlements of the Republic of Udmurtia. The results of approbation shown that the method of territorial extrapolation helps to overcome an acute shortage of market information and build statistically significant models of the cadastral values of land plots.